Print Dreams Corporation, located in the United States, has an accounts payable obligation of 750 million payable in one year to a bank in Tokyo. The current spot rate is W116/$1.00 and the one year forward rate is 109/$1.00. The annual interest rate is 3 percent in Japan and 6 percent in the United States. Print Dreams can also buy a one-year call option on yen at the strike price of $0.0086 per yen for a premium of 0.012 cent per yen. What is the future dollar cost of meeting this obligation using the money market hedge? Show computations. 13 . T. U S x x